When is a HECM “Due and Payable”?

The HECM is Due and Payable (i.e. a demand is made upon you or your heirs for repayment) upon a Maturity Event. A Maturity Event occurs when:
• All borrowers have passed away
• All borrowers have sold or conveyed title of the property to a third party
• The property is no longer the principal residence of at least one borrower for reasons other than death
• The borrower does not maintain the property as principal residence for a period exceeding 12 months because of physical or mental illness
• Borrower fails to pay property taxes or insurance and all attempts to rectify the situation have been exhausted.
• The property is in disrepair, and the borrower has refused or is unable to repair the property.

Non-Borrowing Spouses in certain circumstances do have protection and a Due and Payable may be deferred. Children or other people living in the home do not have protection.

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